Statistics Homework Solutions
Problem
#1362

A linear programming problem using the solver function in MS Excel. Complete with answer report and explanations.

KAK MarketData, Inc. is in the business of evaluating consumer response to products.  A client's contract calls for door-to-door personal interviews with the following requirements:

a.  Interview at least 50 households with no senior citizens

b.  Interview at least 50 households with senior citizens

c.  At least 50% of the households should
be contacted at night

d.  At least 60% of the households with
senior citizens should be contacted at night

e.  At least 250 households should be contacted  


1. Formulate an LP model that will allow KAK MarketData to determine how to conduct the necessary interviews to fulfill the client's contract at minimal cost.  Clearly define your decision variables, your objective function, and your constraints


2. Using Excel Solver, solve the LP.  Place your solution in the space below.  Clearly identify the values of your decision variables and the cost associated with your interview schedule.

See attachment below for cost table.

Attached file(s):
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Lenier-Programming-Solver.doc  View File

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Lenier-Programming-Solver.doc
I. KAK MarketData, Inc. is in the business of evaluating consumer
response to products. A client’s contract calls for door-to-door
personal interviews with the following requirements:

1. Interview at least 50 households with no senior citizens

2. Interview at least 50 households with senior citizens

3. At least 50% of the households should be contacted at night

4. At least 60% of the households with senior citizens should be
contacted at night

5. At least 250 households should be contacted

Based on its current practices, KAK MarketData utilizes the following
structure to calculate its costs:

Day Interview Cost Night Interview Cost

No Senior Citizens in Household $6 $8

With Senior Citizens in Household $10 $8



1. Formulate an LP model that will allow KAK MarketData to determine how
to conduct the necessary interviews to fulfill the client’s contract
at minimal cost. Clearly define your decision variables, your objective
function, and your constraints

2. Using Excel Solver, solve the LP. Place your solution in the space
below. Clearly identify the values of your decision variables and the
cost associated with your interview schedule.
Solution
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